Electricity generation from the solar source is still in its early stages in Brazil especially in the light of related costs that make the final price of energy high when compared with other sources. Nevertheless, recent studies and incentives to the infrastructure sector have brought about new expectations for expansion that may change this scenario. Market experts envisage that solar energy may be sold at specific solar energy auctions, held by the Ministry of Mines and Energy (MME), in the next few years. This memorandum looks at the most recent alterations and measures taken as incentives for the electric power generation sector to foster the solar source.
According to studies available on the websites published by the National Electric Energy Agency (ANEEL) and the MME, Brazil holds favorable conditions for the development of the entire solar energy production line, including:
The current regulatory framework provides a number of incentives for energy generation from renewable sources, including:
It is worth highlighting that the Federal Government has been adopting R&D measures seeking to develop the solar energy generation market.
Recent changes in the regulatory framework of the electricity sector have allowed a great advance in distributed generation by mini and micro generators:
Furthermore, several infrastructure projects, such as the new stadiums which will be hosting the Soccer World Cup in 2014, are contemplating the installation of solar panels, demonstrating concern for the environment and growth opportunities in the sector.
As far as centralized generation is concerned, although the issue of energy prices is still an obstacle, we already have special financing conditions through the National Economic and Social Development Bank (“BNDES”), including:
It is worth noting that the recently introduced tax incentives that allow the adoption of a differentiated tax income regime relating to debentures issued by Special Purpose Companies engaged in infrastructure priority projects, as defined by the MME on case-by-case basis. The investments raised through debentures can also be used to cover costs, expenses or debts relating to periods prior to the date of issue, and the same tax incentive regime applies to investment funds dedicated to infrastructure projects.
Felsberg e Associados
Felsberg e Associados has extensive experience in the electrical energy sector and in structuring projects in relation to energy generation from renewable sources, and is equipped to provide legal assistance to lenders and sponsors in all phases of a project, from structuring the legal model until the effective operation of the plant, including:
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